US and Japan Team Up to Support Yen Through Unconventional Euro-Selling Intervention

The US Treasury Department has taken an unconventional approach to supporting the yen by selling euros for funding, rather than directly selling dollars as in previous operations.

This move avoids negative impacts on the world's largest and most sensitive U.S. Treasury market and preserves Washington's long-standing 'strong dollar' policy stance.

The US has long advocated a strong dollar policy and does not want to be seen as attempting to gain competitive advantage through currency depreciation, which would violate the spirit of the G20 foreign exchange agreement.